Asian stocks set for highest close since 2008: The MSCI Asia Pacific Index was 0.7% higher at 3am UK time, with almost three shares rising for each that fell. The measure has advanced 4.4% this month, poised for the biggest monthly gain since June. Japanese shares were mixed after Honda shares fell 3.4% when a profit forecast missed analysts’ estimates. Earlier, the S&P 500 closed at a fresh all-time high. (Bloomberg)(Financial Times)
Luxembourg to share company bank details: Luc Frieden, finance minister, said Luxembourg was willing to expand the number of accounts covered by new information-sharing agreements with the US and the EU to include global companies. The accords, agreed this month, currently only cover individual taxpayers. (Financial Times)
Japan manufacturing PMIs grow faster: The Markit/JMMA Japan PMI rose to a seasonally adjusted 51.1 in April from 50.4 in March — the fastest rise since March 2012. (Reuters)
US expects first debt cut since 2007: “The US Treasury expects to pay down debt in the second quarter of 2013 as the budget deficit that has dominated national politics starts to shrink.” (Financial Times)
Cyprus announces plans to cut down on graft and reform its political system, ahead of today’s vote on the €10bn international bailout. (Financial Times) Greece approved the firing of permanent civil servants in a fast-tracked ‘omnibus’ bill on Monday, opening the way for eurozone officials meeting in Brussels to release a €2.8bn aid tranche the same day. (Financial Times)
France plans to cut its armed forces headcount. (Financial Times)
Abu Dhabi-UK clean energy investment talks: Abu Dhabi is in talks with the UK government to invest up to £1bn in alternative energy schemes alongside the state-owned Green Investment Bank.
Kodak’s UK pension fund gets old film assets: Eastman Kodak is to offload its outdated camera film business and other assets to British pensioners in return for erasing an estimated $2.8bn of claims. The groundbreaking plan has been agreed by UK pension fund trustees, and would help the company begin extricating itself from Chapter 11. (Financial Times)
COMMENT AND CURIOS:
- Will Italy lead the eurozone anti-austerity revolt? (Financial Times)
- Brokerage accountants: the CFTC is looking closely at you. (Wall Street Journal)
- The Nikkei 225, not what it used to be – thanks to Fast Retailing. (Bloomberg)
- Not all European countries can be like Germany. (Financial Times)
- KKR’s €320m loan to a Spanish building materials company illustrates a new kind of private equity financing. (Financial Times)
- European royal families feel a (small) pinch of austerity.. except the Dutch and Belgian ones. (Wall Street Journal)
- FAA furloughs end. Cuts to meals for seniors, nutrition programmes for mothers/small children go ahead. (Bloomberg)
- Abenomics detractors brace for “told you so” moment. (Reuters)
- Italy’s debt auction yesterday was at the lowest rates since late 2010. (Financial Times)
OVERNIGHT MARKETS: UP
Asian markets
Nikkei 225 down -59.47 (-0.43%) at 13,825
Topix up +6.13 (+0.53%) at 1,167
Hang Seng up +150.61 (+0.67%) at 22,731
US markets
S&P 500 up +11.37 (+0.72%) at 1,594
DJIA up +106.20 (+0.72%) at 14,819
Nasdaq up +27.76 (+0.85%) at 3,307
European markets
Eurofirst 300 up +6.48 (+0.54%) at 1,203
FTSE100 up +31.60 (+0.49%) at 6,458
CAC 40 up +58.63 (+1.54%) at 3,869
Dax up +58.74 (+0.75%) at 7,874
Currencies
€/$ 1.31 (1.31)
$/¥ 97.89 (97.71)
£/$ 1.55 (1.55)
Commodities ($)
Brent Crude (ICE) down -0.15 at 103.66
Light Crude (Nymex) down -0.12 at 94.38
100 Oz Gold (Comex) up +3.70 at 1,471
Copper (Comex) up +0.90 at 323.45
10-year government bond yields (%)
US 1.67%
Germany 1.21%
CDS (closing levels)
Markit iTraxx SovX Western Europe -1.4bps at 95.29bp
Markit iTraxx Europe -4.88bps at 100.44bp
Markit iTraxx Xover -19.2bps at 407.84bp
Markit CDX IG -1.97bps at 76.28bp
Sources: FT, Bloomberg, Markit